After the German-based Neoplan Bus GmbHs alleged that Zonda copied its outline design in Beijing, Jiangsu Zonda Bus announced recently that it has filed a lawsuit against Neoplan, MAN Nutzfahrzeuge AG and Iven & Hillmann to the Yancheng City intermediate court, request that the three German auto makers should stop infringing Zonda¡¯s enterprise image and business integrity, and should make public written apology through related media.

Event review

German MAN Nutzfahrzeuge AG and Neoplan Bus GmbH declared at a Beijing press conference in October, 2006, that A9 buses, which manufactured and sold by Jiangsu Zonda Industrial Group, copy the outline design of its Starliner bus, a representative model of Neoplan Bus GmbH. Zonda Bus immediately made a press conference and announced that A9 series luxury bus is a product with intellectual property rights through independent research and development, and showed Zonda¡¯s patent certificate of A9 bus on the site. Zonda also said that the purpose of Neoplan Bus GmbH¡¯ is to crackdown Zonda brand and weaken its brand influence, and that Zonda would file a lawsuit against their libel.

Domestic Bus Enterprise Takes Legal Means to Safeguard Dignity

Therefore, the author visited Jianbing Wu, professor of Law School of NanJing University, and also a famous expert in the field of Chinese intellectual property rights. Having known that although Neoplan Bus GmbH had filed a lawsuit against Zonda for outline design patent infringement to the First Intermediate People Court Of Beijing, but the action that it unilaterally announced to the public through media that the exterior design of Zonda¡¯s A9 bus is a ¡°complete copy¡± of its design before the court had made a decision, will damage the company¡¯s enterprise image as a large-scale international company and also will influence the judicial fairness, which is an illegal act abroad. The litigation for German party of Zonda Bus is an effective method to protect its own interest under the law.

It is reported that, the three companies, as the defendants of this lawsuit, all received the summons signed by Yancheng court and bill of indictment in German version. But Neoplan and MAN have not made any response until now, except the principal of Iven & Hillmann GmbH, the third defendant, had made an apology for Zonda Bus for this event in the website. Zonda Bus said it will safeguard its legitimate interest by taking legal means.

The German author made a public apology

On Jan 5th, 2007, Hillmann received the summons subscribed by Yancheng City Court and the indictment in German. This indictment required that Hillmann should attend the court at 9:00 AM on July 17th, 2007, Beijing Time. Moreover, the Yancheng City Court demanded: 1. the respondent should attend the court on time; 2. the respondent should attend the court with the indictment; 3. the respondent should sign and seal at the return receipt after got the indictment. In addition, the Court required Hillmann submit a written statement within 30 days. The indictment asked for Man AG, Iven & Hillmann Co. and Neoplan Co. ltd immediately stop slandering on Zonda Group, eliminate the negative effect brought by the affair, and apologize to the Chinese party through German media. The indictment also restated that Zonda Group has the right to require the German party to pay for the compensation and undertake the legal cost for the German media has brought serious impact to Zhongda Group by reprinting and citing.

Thereby, Hillmann soon announced his apology statement to Chinese party in his Blog. He said: ¡°As the author of the Blog article, I had no intention to hurt the relationship between China and Germany. In June, 2006, I presented the international meeting in Shanghai on invitation and made an address, where I had been well treated by the host. Now I would like to draw back my violent words, and apologize to the Chinese auto manufacturer.¡± On Jan 7th, Hillmann amended this statement again: ¡°Thank you for your comments very much. It is a pity that some of these comments are only insulting China and complaining the auto manufacturer of China party. In view of the coming legal procedure of the session in China, I could not announce these comments. Herewith I plead for your forgiveness.¡±

Behind the two litigations

It is revealed that the sales of Zonda jumped by 89% year-on-year in the first three quarters of 2006 with exports surging by 249% in the same period. Export has become a new engine triggering the business growth of Zonda. Zonda Bus presented the 61st IAA Commercial Vehicle Exhibition in Hannover Germany on behalf of China¡¯s bus makers, and the Zonda product has become the spotlight at the exhibition for its unique design, person-friendly interior trim as well as sound quality which meet EU standards. The successful show has significantly promoted Zonda brand and reputation to global audience and presents China¡¯s bus manufacturing capabilities. Zonda Bus is accelerating its go-broad strategy through aggressive business growth in overseas markets, and exports will account for more than 60% of total sales of Zonda in coming years. In addition, Zonda will make unrelenting efforts to improve its overseas service system and to optimize export product structure through an overseas business expansion plan highlighted by technology transfer and overseas plant establishment. Zonda has already signed strategic cooperation agreements with partners in Thailand, Vietnam and Turkey, which will lay the solid foundation for Zonda to boost its overseas presence.

In fact, this kind of lawsuit is not uncommon in the automobile industry. Toyota once filed a lawsuit against Geely, a Chinese car maker, for allegation of intellectual property right violation, but it is often the defendant sides win such lawsuits because there is no commonly accepted way in judging whether an automobile model has copied another or not. The author learns that following the expansion of Chinese auto exporting, the export destination of the national branded auto also starts to upgrade, from the prior Africa, Mid-east and Southeast Asia, etc to the developed countries with high entering standard. At present, these countries and regions, such as Middle & South America, Middle Asia, Russia and East Europe, etc, has already come into the view of the Chinese local branded manufacturers. And now the step to enter the European and American market is further as well. Some experts of this industry believed ¡°More and more Chinese autos entering the Europe, the benefit of the local European enterprises will be severely impacted gradually. Therefore they would surely start to resist Chinese auto, which is also the reason of the increase of litigation of Intellectual Property Right recently.¡± Therefore, foreign automakers are filing these lawsuits against Chinese counterparts in a bid to damage the reputation of competitors and restrict competitors¡¯ business development.